Claiming back IVA in UK or Spain for refurbishment

I'm a property owner in Spain but reside in the UK and I currently have a builder refurbishing my villa.

He has offered the job with or without IVA @ 18% and the IVA will account for approx 6,000 euro.

I presume by paying cash I wouldn't receive an invoice/ receipt? I trust the builder so I'm not concerned with needing proof of the payments .... but is there any other advantage to having a receipt?

Is there a way to claim back the IVA or at least claim something back?

If I can't in Spain is there anyway I can in the UK for the work done to my Spanish property?

Appreciate any assistance.

Unless you have a registered business in Spain I can't see how you could claim back any IVA paid, and also can't see why you would be able to claim it back in the UK, any more than you can claim back the IVA you pay on any goods or services purchased in Spain. Maybe there's some loophole I don't know about. Looking to the longer term though, if you have a proper invoice for the work, this could be deducted from any future capital gain that may be taxable upon the sale of the property. Also, without an IVA invoice, you have absolutely no guarantee or recourse with the builder. Chance you take.

Roberto is correct on claiming the IVA back, there is no way to do it as an individual, and so there shouldn't be!  Otherwise we'd all claim it back for everything we bought so it would make it pointless charging it in the first place.

In terms of the invoice/ receipt, that's up to you but surely it's piece of mind to have it, even if you do know the builder?  After all the horror stories we hear, I would be very uncomfortable in not having that security going forward.  What if he does do a bad job, or something goes wrong in a year's time?  If you've only paid cash your options to get those issues fixed would be much more reduced.

Justin

Mmm! Several moot points here. Clearly there's no way of reclaiming the IVA anywhere, but to save 6000 euros is very tempting. The point about CGT is true, but that would only save about 1250 euros.

Not paying IVA seems to be a national pastime here - it's almost condoned by everybody. Small wonder that the government doesn't have enough cash in its coffers!

At the end of the day it's your choice ...

 Thanks for the replies. Food for thought.

Under certain circumstances it's reclaimable in rthe UK.

http://www.homebuilding.co.uk/feature/reclaiming-vat-renovation

 http://www.fomento.gob.es/MFOM/LANG_CASTELLANO/_ESPECIALES/AYUDAS_PEVR0912/IRPF/

There is a possibility for deducting 20% of refurbishment expenses in your annual non resident income taxes regarding the house if you meet the criteria of the law which is explained in the link above. It is in force from 7th of May 2011 to 31st of December 2012.

You need of course to have a formal invoice with VAT in order to be able to claim these expenses back.

I would expect UK  VAT to only be reclaimable on a UK property under that scheme.

Jean